Palo Alto Energy Reach Code Changes for Building Construction

The City has required sustainable, climate-friendly construction for years to protect the local environment, reduce air pollution, and achieve its climate goals. New enhanced energy efficiency codes take effect in Palo Alto on October 4, 2024. Changes allow both all-electric and mixed fuel construction and require all new and altered buildings to comply with these enhanced energy efficiency codes.

These new changes advance Council direction following the suspension of the 2022 all-electric mandate for new construction including substantial remodels as a result of a Ninth Circuit Court of Appeals finding that the Energy Policy and Conservation Act (EPCA) preempts state and local building codes that impermissibly regulate energy use by products covered by EPCA, like natural gas appliances.

Key Changes

• Energy-efficient homes and buildings: New buildings and remodels will need to meet updated energy standards based on various building types and have a higher source energy compliance requirement than the State Energy Code.  
• Expert help: For all projects subject to enhanced energy efficiency requirements, you'll need to work with a Certified Energy Analyst (CEA) to develop an Energy Compliance Report. 
• Electric readiness for future options: New buildings and remodels that use gas appliances will need to be "electric ready," meaning it must be prepared for easy conversion to electric appliances at a later time, such as, but not limited to, pre-wiring for future electrical appliances. 
• Electric alternatives encouraged: While you can still build with gas appliances, the City strongly encourages electric alternatives for appliances or systems. Electric appliances can help save you money and are better for the environment. 

If you are in the building design and construction industry and/or an interested property owner, a virtual information session will be held to answer your questions on Friday, September 20, 9 – 10:30 a.m. This will be recorded and shared on the City’s project page for public awareness. 

Many Palo Alto buildings and homes have already gone all-electric, and you can too at /GoElectric.